Diageo has agreed the sale of its wine interests in Argentina to Grupo Peñaflor.

The company has also announced Peñaflor will be appointed as the distributor of Diageo’s international spirits brands and, after an interim period, will jointly produce its domestic spirits brands across Argentina.

It is hoped the appointment of a dedicated distributor in Argentina will strengthen Diageo’s route to market and is “expected to accelerate the performance of Diageo’s brands”.

The sale includes the Navarro Correas and San Telmo wine brands, together with production sites and vineyards. In the year ended 30 June 2015 net sales were £18.5 million.

Sale proceeds, which are not material, have not been disclosed. The transaction is expected to complete early in 2016.